The Heckscher-Ohlin Model Predicts All of the Following EXCEPT

question 60

Multiple Choice

The Heckscher-Ohlin model predicts all of the following EXCEPT

• A) the volume of trade.
• B) which country will export which product.
• C) which factor of production within each country will gain from trade.
• D) that relative wages will tend to become equal in both trading countries.
• E) that trade increases a country's overall welfare.

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Definitions:

For Deposit Only

An endorsement on a check specifying that the check must be deposited into an account and cannot be cashed directly.

Negotiation

The process of discussing things with others to reach an agreement, compromise, or settlement.

Order

An authoritative command, direction, or instruction, typically issued by a court or by someone in a position of power.

Bearer

A term referring to an individual in possession of a negotiable instrument (such as a check or bond) that is payable to whoever holds it.